DYMATIC CHEM(SZ:002054)2018-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 833,175,810.56, a decrease of 38.68% compared to CNY 1,358,732,418.47 in the same period last year[13]. - The net profit attributable to shareholders of the listed company was CNY 28,469,180.25, an increase of 11.77% from CNY 25,470,434.54 in the previous year[13]. - The net cash flow from operating activities increased by 80.13% to CNY 79,399,643.92, compared to CNY 44,079,139.45 in the same period last year[13]. - The basic earnings per share rose to CNY 0.0679, reflecting an increase of 11.68% from CNY 0.0608 in the previous year[13]. - The total comprehensive income for the first half of 2018 was CNY 33,215,960.73, compared to CNY 28,485,064.04 in the previous year, indicating an increase of approximately 16.0%[197]. - The company's investment income for the first half of 2018 was CNY 18,140,681.87, down from CNY 24,395,047.49, representing a decline of about 25.6%[196]. - The total profit for the first half of 2018 was CNY 44,049,319.21, an increase from CNY 40,404,323.91 in the previous year, representing a growth of about 6.5%[196]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,887,388,984.23, a decrease of 4.10% from CNY 3,010,847,580.74 at the end of the previous year[13]. - The total liabilities decreased from CNY 1,011,396,625.24 to CNY 879,832,521.60, a decline of about 13%[188]. - The company's cash and cash equivalents increased from CNY 69,015,035.29 to CNY 93,917,178.48, an increase of about 36%[191]. - Accounts receivable increased from CNY 132,515,456.06 to CNY 145,233,613.08, a rise of approximately 9.5%[191]. - Inventory increased slightly from CNY 30,172,914.83 to CNY 30,994,731.70, an increase of about 2.7%[191]. - Short-term borrowings increased from CNY 307,835,936.05 to CNY 417,848,779.04, an increase of approximately 36%[187]. - Non-current liabilities decreased from CNY 230,685,284.66 to CNY 182,285,541.50, a decline of about 20.9%[188]. Business Segments - The company operates in three main business segments: fine chemicals, petrochemicals, and agricultural products, with fine chemicals being the core business[21]. - The fine chemicals segment includes textile chemicals, leather chemicals, and silicone products, with a focus on developing industry-leading products since 1989[22]. - The petrochemical segment produces cyclopentane, isooctane, and high-purity propane, with products meeting or exceeding international standards[25][26]. - The agricultural products segment focuses on the breeding and sale of "Yingnong Grass Fragrant Pig," utilizing an eco-friendly farming model[27]. Investments and Projects - The company invested 5 million in Yibin King Kong New Materials Co., holding a 10% stake, and increased investment in Electronic Mineral Co. by 120 million JPY[28]. - The company is constructing a 60Kt/a environmentally friendly high-end textile chemical project in Shaoxing, with 98% completion and trial operation started[28]. - The company has ongoing projects including a chemical production base with an investment of 21,565.3 million yuan and a processing plant for agricultural products with an investment of 1,962.17 million yuan[68]. Risk Management - The company faced various risks including fluctuations in raw material prices and intensified industry competition, which were detailed in the report[3]. - The company is seeking to improve its oil and petrochemical business by changing its revenue model to processing fees, aiming to reduce losses[42]. - The company plans to strengthen credit management to mitigate risks associated with customer defaults due to rising operational costs[82]. - The company acknowledges the risk of major epidemics affecting livestock and plans to address potential impacts on production and market demand[82]. Research and Development - The company has a strong focus on R&D, leading to the development of water-based synthetic leather materials and eco-friendly production technologies[24]. - The company has established various research and innovation platforms, including a national-level technology center and a postdoctoral research station, enhancing its R&D capabilities[31]. - Research and development expenses increased by 23.53% to CNY 41.78 million compared to the same period last year[49]. Environmental Compliance - The company has achieved compliance with national and local environmental protection standards for wastewater, waste gas, and solid waste emissions during the reporting period[130]. - The company has invested in environmental protection facilities, including 1 set of wastewater treatment facilities with a processing capacity of 200 tons per day[131]. - The company has implemented measures to reduce dust emissions, including the installation of dust collectors and regular cleaning of factory roads[129]. Shareholder Activities - The major shareholder, Shunde District Ruichi Investment Co., Ltd., planned to reduce its holdings by up to 5,000,000 shares, accounting for 1.19% of the total share capital[147]. - The controlling shareholder, Huang Guanyong, announced a plan to increase his holdings by up to 10 million RMB, acquiring 444,500 shares, which is 0.11% of the total share capital[149]. - The company completed the election of its sixth board of directors and supervisory board during the annual general meeting held on May 18, 2018[156]. Future Outlook - Future guidance estimates a revenue growth of 10-15% for the second half of 2018, driven by increased demand and new product launches[120]. - The company plans to strengthen quality inspection and preventive measures to mitigate food safety risks, which have become a significant concern for consumers[83]. - The management expects a revenue growth of approximately 15% in the next fiscal year[119].